finance
Domino's India Operator Jubilant FoodWorks Shares Fall to Two-Year Low After Weak Quarterly Sales
Jubilant FoodWorks, the operator of Domino's Pizza in India, saw its shares drop to a two-year low following the release of its second-quarter results. The company reported a 4.4% year-on-year revenue increase, which fell short of analyst expectations. This performance reflects challenges in the Indian quick-service restaurant sector amid economic pressures.
Apr 7, 11:40 AM·1m read1 source
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Jubilant FoodWorks Ltd, which holds the master franchise for Domino's Pizza in India, reported its financial results for the second quarter ended September 30, 2024. 3 billion rupees ($170 million) from the previous year. 2% increase anticipated by analysts, according to LSEG data.
The shares of Jubilant FoodWorks declined 10% on Wednesday, reaching the lowest level since October 2022. 65 rupees, marking a significant drop from recent trading levels. This reaction came after the company disclosed its earnings, which highlighted slower sales momentum in a competitive market.
Performance Details Jubilant FoodWorks operates over 1,800 Domino's outlets across India and has expanded into other brands like Dunkin'.
1% in the prior quarter. 4 billion rupees, supported by cost controls and operational efficiencies. The company attributed the subdued revenue growth to inflationary pressures and cautious consumer spending in urban areas.
Despite the shortfall, management noted improvements in delivery times and digital ordering, which accounted for 85% of sales. Jubilant FoodWorks plans to open 180-200 new stores in fiscal year 2025 to drive long-term expansion.
quick-service restaurant industry faces headwinds from rising input costs and competition from local players.
Jubilant FoodWorks, listed on the National Stock Exchange, has a market capitalization of about 310 billion rupees following the share drop. Investors are monitoring upcoming quarters for signs of recovery in discretionary spending. , which oversees global operations.
, India contributes significantly to the brand's international revenue. Future earnings reports will provide further insight into consumer trends and growth strategies.
